The Spaza Shop Scheme-Financial relief for businesses and individuals

The Spaza Shop Scheme


Spaza Shop Support Scheme The Department has finalized the details of a dedicated Spaza Shop Support Scheme of R500 million. A date for when applications will open will be announced on Thursday, 2 April 2020. The Department also plans to finalize details to support other businesses in the informal sector such as hawkers etc. 

The Spaza Shop Scheme provides: 

  • Dedicated access to networking purchasing or bulk buying opportunities through pre-selected and pre-approved wholesalers. These will include buying a pre-approved basket of goods that includes produce procured from SMMEs. What this means is: you will be made to buy from a pre-approved basket of goods – goods included to support other SMMEs supported by The Department and its agencies, as well as SMMEs that have certification for their products 
  • A credit facility with seed capital to assist those  unable to access money to purchase stock. There is an intention of continuing this post COVID-19 crisis. 

Other support includes assistance with: 

  • management support 
  • bookkeeping  
  • inventory management 
  • Occupational Health and Safety standards training  
  • meeting the required hygiene regulations during the lockdown, such as having the ability to sanitise between serving customers and sanitise serving counters
  • registration on CIPC  
  • registration with The UIF 
  • setting up bank accounts 
  • will not give money to individuals, as they must process payments in accordance with the laws of financial management in the country, therefore, they will assist you with setting up bank accounts for the business
  • licensing  
  • access to basic business tools such as instant payment machines, speed points, and other vending facilities

 In order to qualify you will need to meet the following criteria:  

  • be an owner–managed and owner–operated Spaza Shop 
  • be willing to register on CIPC and with the UIF 
  • register with SARS 
  • provide proof of banking
  • register on SMMESA  
  • hold permits to trade (if trading illegally, you must go to nearest municipality and register)  
  • be willing to stock products by other South African SMMEs 
  • be willing to submit monthly Management Accounts  

It has not been categorically confirmed whether you will be eligible should you be a foreign national. You will be eligible if admitted  to SA “lawfully”, and hold valid passports with relevant business visas or permits – which include the condition to work or operate a business. 

CURRENT STATUS: SMME SA website launching on 2 April 2020